Ohio policyholders may be able to fight insurance claim denials that were based on an alleged insurance material misrepresentation on an initial application.

Working with insurance companies can be stressful and difficult. Filing a claim can involve countless hours of paperwork and conversations with an insurance agent. Insurance companies are often frugal organizations that don’t want to give you the money you are owed, and some companies use any excuse available to deny your claim. One tactic used to deny claims in insurance material misrepresentation.

By claiming insurance material misrepresentation, an insurance company argues that a policy is null and void based on an omission or misrepresentation made at the time you purchased the policy. A material misrepresentation is one that, had it not been made, would have affected the insurance company’s decision to provide the coverage stated in the policy.

An example of true insurance material misrepresentation would be if an applicant for car insurance said they had not been in any prior accidents, despite the fact that they had a recent history of many accidents. Based on that fact, an insurer might offer a policy with less coverage or a higher premium, or it may decline to offer coverage at all.

Insurance material misrepresentation allows insurance companies to cancel coverage under a policy and deny all claims associated with the policy. In valid cases, this regulation allows insurance companies to protect themselves and their financial well being. However, some claim that insurance companies take advantage of insurance material misrepresentation arguments.

Some insurance companies allegedly claim insurance material misrepresentation on seemingly ridiculous scenarios such as whether a car was housed in a garage, whether the vehicle is equipped with an alarm system, or whether the vehicle was modified by something as simple as aftermarket tires. Consumer allegations suggest that insurance companies may pick apart applications to find any misrepresentation, no matter how insignificant, and use that supposed misrepresentation to deny a claim.

In other situations, insurance companies allegedly take advantage of unintentional insurance material misrepresentation. Insurance applications can often be confusing, and consumers may make innocent mistakes. However, law forbids insurance material misrepresentation, and applicants are required to answer truthfully.

Compounded with the fact that insurance companies are not required to investigate application answers, insurance companies hold most of the power in these situations. They aren’t required to investigate the application, but they are allowed to investigate and deny claims based on their findings should upholding coverage be a negative outcome for them financially.

Although the system often puts consumers at a disadvantage, enlisting the help of a qualified attorney can help consumers navigate insurance claims. Insurance attorneys can help field accusations of insurance material misrepresentation and, should the need arise, help file a lawsuit against insurance providers.

Numerous individuals have already taken advantage of the assistance of legal professionals and filed a lawsuit against their insurance providers. These lawsuits often argue that the insurance providers wrongfully denied a claim or cancelled a policy based on accusations of insurance material misrepresentation. An insurance material misrepresentation lawsuit could help consumers restore an insurance policy, recover compensation, and more.